The Consumer Financial Protection Bureau is seeking dismissal of a lawsuit challenging its authority. The complaint argues that, among other things, legislative aspects of the CFPB’s creation were unconstitutional, and Director Richard Cordray’s January 4, 2012, recess appointment by President Obama should be dismissed because Congress was not technically adjourned at the time.

In its motion to dismiss, the CFPB argues that none of the plaintiffs, including State National Bank of Big Spring and a number of Republican state attorneys general, have standing or can prove injury.

A client advisory from Ballard Spahr points out that another pending lawsuit could have implications for the validity of Director Cordray’s appointment. In that case, Noel Canning v. National Labor Relations Board, a soft drink bottler and distributor is challenging an NLRB demand that his company enter into a collective bargaining agreement with a union. The plaintiff argues that this action is also invalid because of recess appointments made by President Obama to the Board.